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Financial Planning

10 Money Moves to Make Before 2012

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Set Up Tax-Advantaged Accounts

By Dan Kadlec Dec. 07, 2011
Getty Images

You have until the tax deadline of April 17 next year to set up and contribute to most types of IRAs. But some tax-advantaged accounts, including an individual 401(k) or individual Roth 401(k) must be established by Dec. 31. The big one: Roth conversions must be done by year end. Once a savings vehicle for the 99%, the Roth’s income limitations have been lifted and it is now available to everyone. If you convert your traditional IRA to a Roth you’ll get hit with an immediate tax bill. But if your assets are temporarily depressed (whose aren’t?) and you believe tax rates may increase (can you say budget deficit?), converting now may leave you with more later.

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  • 10 Year-End Money Moves

    • Plan Your New Year’s Resolution Now
    • Use It or Lose It
    • Set Up Tax-Advantaged Accounts
    • Invest in the Future
    • Chip Away at Your Estate
    • Take Your Remaining Vacation Days
    • Give Wisely
    • Shift Income
    • Harvest Tax Losses
    • Think Green
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